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0 An analyst is trying to determine the value of ABC Company using multistage DDM where he assigned 7% to be the appropriate discount rate.
0 An analyst is trying to determine the value of ABC Company using multistage DDM where he assigned 7% to be the appropriate discount rate. The analyst believes that the company is going to experience a supernormal growth for the next 3 years where growth rate is going to be 12% in each year. After 3 years, the growth rate is going to decline linearly from 12% to 4% over a period of 8 years after which the growth rate will remain at 4%. If the company's current dividend per share (DPS) is $8.70, estimate the value using DDM. What is the Dividend Per Share for Year 3? What is the Intrinsic Value? What is the Dividend Per Share for Year 2? What is the Dividend Per Share for Year 1? What is the terminal value? Choose. Choose... $10.91 $555.00 $9.94 $480.93 $9.74 $10.94 $554.10 $482.01 $12.22
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